Lender That Will Allow A Seller Second?
Hi everyone.
I just found a deal where the builder (who builds single townhomes for individual investors but is stuck with inventory, thus wants to unload all as commercial apartment) that will carry a large chunk (25%+) second after 25% discount. He even told me that he would "forgive" the second after closing.
Questions...
1) Is there a lender that will allow seller second on 40+ units (mix of townhomes and duplexes) where the seller carries 25-30%?
2) What is the tax ramification to the seller and me (I.e. buyer) when the note is forgiven? Will this count towards as income for me?
I just found a deal where the builder (who builds single townhomes for individual investors but is stuck with inventory, thus wants to unload all as commercial apartment) that will carry a large chunk (25%+) second after 25% discount. He even told me that he would "forgive" the second after closing.
Questions...
1) Is there a lender that will allow seller second on 40+ units (mix of townhomes and duplexes) where the seller carries 25-30%?
2) What is the tax ramification to the seller and me (I.e. buyer) when the note is forgiven? Will this count towards as income for me?
Comments(0)
I think you really have to shop and see.
The last I tried wamu would allow a seller 2nd if the 1st was <80% ltv.